In two separate deals, Canadian investor Brookfield Asset Management (TSX: BAM) has agreed to pay a total of about $1.4 billion to acquire TerraForm Power (NASDAQ: TERP) and TerraForm Global (NASDAQ: GLBL) from bankrupt cleantech company SunEdison. Both TerraForm assets are yieldcos that own and operate wind and solar assets across the world; the deals are expected to close during 2H.
BAM is already a shareholder in TerraForm Power and will up its interest to 51% with the investment, which implies a total equity value of $1.7 billion and an enterprise value of $6.6 billion. The new investment in TerraForm Global, meanwhile, will consist of $787 million in cash and the assumption of $455 million in debt, representing an enterprise value of some $1.3 billion.
The sale is a major step in the reorganization of SunEdison, a renewable energy business that filed for Chapter 11 last April. BAM, for its part, should have some familiarity with the TerraForm companies: The firm reportedly already owns more than 17,000 MW in renewable energy assets.
TerraForm Power stock ticked up nearly 4% on Tuesday while TerraForm Global shares jumped 16%.